WAICA Reinsurance Corporation Plc, a leading reinsurer operating in nine African countries, witnessed a significant increase in its Gross Written Premium (GWP) in 2022, according to its Group Chairman, Kofi Duffuor.
The company’s GWP rose from $153.3 million in 2021 to $214.2 million in 2022, representing a remarkable growth rate of 40%.
During the 2022 Annual General Meeting held in Accra over the weekend, Duffuor shared further insights into WAICA Re’s performance. He revealed that Facultative business accounted for $160.2 million, contributing 75% of the GWP, while Treaty business brought in $54 million, representing 25% of the GWP.
Duffuor highlighted the breakdown of the premium generation by business classes. Property insurance generated 50% of the 2022 GWP, followed by Casualty with 16%, Engineering with 11%, Oil & Gas with 10%, Marine & Aviation with 7%, Motor with 3%, and Life with 3%.
The company experienced robust growth across all classes of business, except for Motor, which declined by 11% compared to the previous year. Notably, Property insurance saw a substantial growth rate of 83%, followed by Life at 56%, Engineering at 51%, Marine & Aviation at 28%, and Oil & Gas at 27%.
WAICA Re’s GWP growth momentum varied across its operating countries. Liberia led the way with a 229% increase in GWP, followed by Kenya with 105%, Zimbabwe with 94%, Asia and the Middle East with 65%, The Gambia with 40%, Tunisia with 36%, Nigeria with 35%, Ghana with 2%, and the rest of Africa with a 12% decrease. Sierra Leone experienced an 81% decline in GWP.
Duffuor emphasized the significance of WAICA Re’s home market, stating that Anglophone West Africa, including Nigeria and Ghana, contributed 37% of the total GWP. Francophone West Africa accounted for 8% of the GWP, Tunisia contributed 11%, and the Middle East, the rest of Africa, and Asia contributed 7%, 6%, and 5% respectively. WAICA Re’s subsidiaries in Zimbabwe and Kenya each contributed 13% to the GWP
Despite a 23% increase in operating expenses from $18.5 million in 2021 to $22.7 million in 2022, WAICA Re demonstrated strong underwriting profitability due to sound risk selection and underwriting practices. The company achieved a 27% growth in technical profit, rising from $37.9 million in 2021 to $48.3 million in 2022. Underwriting profit also increased by 32% from $19.4 million in 2021 to $25.6 million in 2022.
Investment and other income witnessed a 16% increase from $4.6 million in 2021 to $7.2 million in 2022. WAICA Re’s net profit before tax rose by 41%, reaching $29.9 million in 2022, compared to $21.2 million in 2021.
The company’s improved premium collection allowed for a 28% increase in cash and investment assets, totaling $184 million in 2022, compared to $144.4 million in 2021. Reflecting the profit performance in 2022, WAICA Re declared a dividend of $0.10139 per share, amounting to $6 million for the year, an increase from the $5 million dividend declared in the 2021 financial year.
Duffuor announced the successful outcome of the rights issue, which aimed to attract more investors. The rights issue involved 10,000,000 ordinary shares of par value $1 at a price of $2.72 per share. After the rights issue, the total share capital of WAICA Re increased to $88,438,695 as of March 31, 2023, from $64,876,456 as of December 31, 2022. The unaudited total shareholders’ fund rose to $161,555,358 as of March 31, 2023, compared to an audited position of $132,611,560 as of December 31, 2022.
Duffuor stated that the capitalization efforts would strategically position WAICA Re to underwrite larger businesses, especially in the oil and gas sector, expand its ICT infrastructure, make equity investments, and ensure a robust balance sheet to enhance its competitiveness in the reinsurance market.
The company also reported an 81% increase in retrocession premium, from $24.2 million in 2021 to $43.7 million in 2022. This growth was primarily driven by increased business volume and the need to protect the net account. Consequently, the overall premium retention ratio decreased from 84% in 2021 to 80% in 2022. Net earned premium increased by 8.2%, reaching $158.4 million in 2022, compared to $146.4 million in 2021.
